Table of Contents
What is an example of a labor intensive industry?
Industry or process where a larger portion of total costs is due to labor as compared with the portion for costs incurred in purchase, maintenance, and depreciation of capital equipment. Agriculture, construction, and coal-mining industries are examples of labor intensive industries.
What is an example of a capital intensive industry?
Examples of capital-intensive industries include automobile manufacturing, oil production, and refining, steel production, telecommunications, and transportation sectors (e.g., railways and airlines). All these industries require massive amounts of capital expenditures.
What is meant by labour intensive industry?
Definition English: Industries that produce goods or services requiring a large amount of labor. Traditionally, labor intensive industries were determined by the amount of capital needed to produce the goods and services. Examples of labor intensive industries include agriculture, mining, hospitality and food service.
What is labor intensive?
Definition of labor-intensive : having high labor costs per unit of output especially : requiring greater expenditure on labor than in capital.
What is capital intensive method of production?
Capital intensive refers to a productive process that requires a high percentage of investment in fixed assets (machines, capital, plant) to produce. A capital-intensive production process will have a relatively low ratio of labour inputs and will have higher labour productivity (output per worker).
What is meant by a labour intensive industry?
Industries that produce goods or services requiring a large amount of labor. Traditionally, labor intensive industries were determined by the amount of capital needed to produce the goods and services. Examples of labor intensive industries include agriculture, mining, hospitality and food service.
What is the difference between capital and labor?
“Human capital” is a term that refers to the people or the workforce who are available for various jobs. “Labor” is the work that people do. 2. “Human capital” refers to the knowledge, competence, and the ability of people to perform labor.
What is labour capital?
Capital to Labour ratio measures the ratio of capital employed to labour employed. The capital-labour ratio (K/L) can measure the capital intensity of a firm.